XML 38 R22.htm IDEA: XBRL DOCUMENT v3.21.2
SEGMENT INFORMATION
 6 Months Ended
Sep. 30, 2021
Segment Reporting [Abstract]  
SEGMENT INFORMATION

(N) SEGMENT INFORMATION

Operating segments are defined as components of an enterprise that engage in business activities that earn revenue, incur expenses, and prepare separate financial information that is evaluated regularly by our chief operating decision maker in order to allocate resources and assess performance. On September 18, 2020, we sold our Oil and Gas Proppants business, which had been reported as an operating segment. The Oil and Gas Proppants business was determined to meet the discontinued operations accounting criteria; therefore, this segment is no longer separately reported in our reportable segment footnote for any of the periods presented. Certain expenses of the Oil and Gas Proppants business that related to assets not included in the sale, namely real property and equipment in south Texas, real property in Illinois, and certain other assets, are included in Other when reconciling segment operating earnings to consolidated operating earnings. See Footnote (C) for more information about the sale of the Oil and Gas Proppants business.

Our business is organized into two sectors within which there are four reportable business segments. The Heavy Materials sector includes the Cement and Concrete and Aggregates segments. The Light Materials sector includes the Gypsum Wallboard and Recycled Paperboard segments.

Our primary products are commodities that are essential in commercial and residential construction; public construction projects; and projects to build, expand, and repair roads and highways. Demand for our products is generally cyclical and seasonal, depending on economic and geographic conditions. We distribute our products across many United States markets, which provides us with regional economic diversification. Our operations are conducted in the U.S. and include the mining of limestone for the manufacture, production, distribution, and sale of portland cement (a basic construction material that is the essential binding ingredient in concrete); the grinding and sale of slag; the mining of gypsum for the manufacture and sale of gypsum wallboard; the manufacture and sale of recycled paperboard to the gypsum wallboard industry and other paperboard converters; the sale of readymix concrete; and the mining and sale of aggregates (crushed stone, sand, and gravel).

We operate eight modern cement plants (one of which is operated through a joint venture located in Buda, Texas), one slag grinding facility, and 29 cement distribution terminals. Our cement companies focus on the U.S. heartland and operate as an integrated network selling product primarily in California, Colorado, Illinois, Indiana, Iowa, Kentucky, Missouri, Nebraska, Nevada, Ohio, Oklahoma, and Texas. We operate 26 readymix concrete batch plants and three aggregates processing plants in markets that are complementary to our cement network. On April 17, 2020, we sold our Concrete and Aggregates companies in northern California. See Footnote (C) for more information about the sale.

We operate five gypsum wallboard plants and a recycled paperboard mill. We distribute gypsum wallboard and recycled paperboard throughout the continental U.S., with the exception of the Northeast.

We account for intersegment sales at market prices. For segment reporting purposes only, we proportionately consolidate our 50% share of the Joint Venture Revenue and Operating Earnings, consistent with the way management reports the segments within the Company for making operating decisions and assessing performance.

 

The following table sets forth certain financial information relating to our operations by segment. We do not allocate interest or taxes at the segment level; these costs are disclosed at the consolidated company level.

 

 

 

For the Three Months Ended September 30,

 

 

For the Six Months Ended September 30,

 

 

 

2021

 

 

2020

 

 

2021

 

 

2020

 

 

 

(dollars in thousands)

 

Revenue

 

 

 

 

 

 

 

 

 

 

 

 

Cement

 

$

288,324

 

 

$

278,062

 

 

$

558,579

 

 

$

539,473

 

Concrete and Aggregates

 

 

52,750

 

 

 

46,300

 

 

 

97,504

 

 

 

90,490

 

Gypsum Wallboard

 

 

172,985

 

 

 

131,210

 

 

 

339,252

 

 

 

261,360

 

Paperboard

 

 

47,798

 

 

 

46,071

 

 

 

91,065

 

 

 

82,815

 

 

 

 

561,857

 

 

 

501,643

 

 

 

1,086,400

 

 

 

974,138

 

Less: Intersegment Revenue

 

 

(25,237

)

 

 

(26,766

)

 

 

(51,319

)

 

 

(46,972

)

Less: Joint Venture Revenue

 

 

(26,926

)

 

 

(27,193

)

 

 

(49,617

)

 

 

(52,493

)

 

 

$

509,694

 

 

$

447,684

 

 

$

985,464

 

 

$

874,673

 

 

 

 

For the Three Months Ended September 30,

 

 

For the Six Months Ended September 30,

 

 

 

2021

 

 

2020

 

 

2021

 

 

2020

 

 

 

(dollars in thousands)

 

Intersegment Revenue

 

 

 

 

 

 

 

 

 

 

 

 

Cement

 

$

5,223

 

 

$

6,267

 

 

$

13,056

 

 

$

12,298

 

Concrete and Aggregates

 

 

—

 

 

 

—

 

 

 

—

 

 

 

106

 

Paperboard

 

 

20,014

 

 

 

20,499

 

 

 

38,263

 

 

 

34,568

 

 

 

$

25,237

 

 

$

26,766

 

 

$

51,319

 

 

$

46,972

 

Cement Sales Volume (M tons)

 

 

 

 

 

 

 

 

 

 

 

 

Wholly Owned

 

 

1,983

 

 

 

1,947

 

 

 

3,835

 

 

 

3,813

 

Joint Venture

 

 

215

 

 

 

233

 

 

 

399

 

 

 

452

 

 

 

 

2,198

 

 

 

2,180

 

 

 

4,234

 

 

 

4,265

 

 

 

 

 

 

 

For the Three Months Ended September 30,

 

 

For the Six Months Ended September 30,

 

 

 

2021

 

 

2020

 

 

2021

 

 

2020

 

 

 

(dollars in thousands)

 

 

(dollars in thousands)

 

Operating Earnings

 

 

 

 

 

 

 

 

 

 

 

 

Cement

 

$

88,750

 

 

$

79,913

 

 

$

151,297

 

 

$

140,368

 

Concrete and Aggregates

 

 

7,539

 

 

 

5,255

 

 

 

12,883

 

 

 

10,673

 

Gypsum Wallboard

 

 

66,331

 

 

 

37,606

 

 

 

129,584

 

 

 

78,931

 

Paperboard

 

 

981

 

 

 

10,652

 

 

 

4,318

 

 

 

13,547

 

Sub-Total

 

 

163,601

 

 

 

133,426

 

 

 

298,082

 

 

 

243,519

 

Corporate General and Administrative Expense

 

 

(10,667

)

 

 

(11,109

)

 

 

(20,135

)

 

 

(28,898

)

Early Retirement of Senior Notes

 

 

(8,407

)

 

 

—

 

 

 

(8,407

)

 

 

—

 

Gain on Sale of Businesses

 

 

—

 

 

 

—

 

 

 

—

 

 

 

51,973

 

Other Non-Operating Income (Loss)

 

 

(944

)

 

 

(90

)

 

 

2,734

 

 

 

(399

)

Earnings Before Interest and Income Taxes

 

 

143,583

 

 

 

122,227

 

 

 

272,274

 

 

 

266,195

 

Interest Expense, net

 

 

(12,268

)

 

 

(12,556

)

 

 

(19,240

)

 

 

(26,597

)

Earnings from Continuing Operations Before Income Taxes

 

$

131,315

 

 

$

109,671

 

 

$

253,034

 

 

$

239,598

 

Cement Operating Earnings -

 

 

 

 

 

 

 

 

 

 

 

 

Wholly Owned

 

$

80,490

 

 

$

69,336

 

 

$

135,067

 

 

$

121,995

 

Joint Venture

 

 

8,260

 

 

 

10,577

 

 

 

16,230

 

 

 

18,373

 

 

 

$

88,750

 

 

$

79,913

 

 

$

151,297

 

 

$

140,368

 

Capital Expenditures

 

 

 

 

 

 

 

 

 

 

 

 

Cement

 

$

6,976

 

 

$

7,909

 

 

$

14,943

 

 

$

18,257

 

Concrete and Aggregates

 

 

527

 

 

 

41

 

 

 

1,073

 

 

 

1,302

 

Gypsum Wallboard

 

 

6,345

 

 

 

4,070

 

 

 

8,039

 

 

 

10,582

 

Paperboard

 

 

375

 

 

 

2,665

 

 

 

1,492

 

 

 

10,535

 

Corporate and Other

 

 

619

 

 

 

—

 

 

 

1,230

 

 

 

—

 

 

 

$

14,842

 

 

$

14,685

 

 

$

26,777

 

 

$

40,676

 

Depreciation, Depletion, and Amortization

 

 

 

 

 

 

 

 

 

 

 

 

Cement

 

$

20,019

 

 

$

19,258

 

 

$

39,550

 

 

$

38,501

 

Concrete and Aggregates

 

 

2,470

 

 

 

2,698

 

 

 

5,048

 

 

 

5,419

 

Gypsum Wallboard

 

 

5,484

 

 

 

5,661

 

 

 

10,880

 

 

 

10,861

 

Paperboard

 

 

3,663

 

 

 

3,344

 

 

 

7,331

 

 

 

6,696

 

Corporate and Other

 

 

704

 

 

 

1,201

 

 

 

1,475

 

 

 

2,501

 

 

 

$

32,340

 

 

$

32,162

 

 

$

64,284

 

 

$

63,978

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Discontinued Operations

 

 

 

 

 

 

 

 

 

 

 

 

Capital Expenditures

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

Depreciation, Depletion, and Amortization

 

$

—

 

 

$

100

 

 

$

—

 

 

$

221

 

 

 

 

September 30,

 

 

March 31,

 

 

 

2021

 

 

2021

 

 

 

(dollars in thousands)

 

Identifiable Assets

 

 

 

 

 

 

Cement

 

$

1,889,037

 

 

$

1,898,930

 

Concrete and Aggregates

 

 

93,550

 

 

 

88,410

 

Gypsum Wallboard

 

 

366,276

 

 

 

366,352

 

Paperboard

 

 

185,641

 

 

 

186,156

 

Other, net

 

 

85,324

 

 

 

298,833

 

 

 

$

2,619,828

 

 

$

2,838,681

 

 

 

Segment operating earnings, including the proportionately consolidated 50% interest in the revenue and expenses of the Joint Venture, represent Revenue, less direct operating expenses, segment Depreciation, and segment Selling, General, and Administrative expenses. We account for intersegment sales at market prices. Corporate assets consist primarily of cash and cash equivalents, general office assets, and miscellaneous other assets.

The basis used to disclose Identifiable Assets; Capital Expenditures; and Depreciation, Depletion, and Amortization conforms with the equity method, and is similar to how we disclose these accounts in our Unaudited Consolidated Balance Sheets and Unaudited Consolidated Statements of Earnings.

The segment breakdown of Goodwill is as follows:

 

 

 

September 30,

 

 

March 31,

 

 

 

2021

 

 

2021

 

 

 

(dollars in thousands)

 

Cement

 

$

203,342

 

 

$

203,342

 

Concrete and Aggregates

 

 

1,639

 

 

 

1,639

 

Gypsum Wallboard

 

 

116,618

 

 

 

116,618

 

Paperboard

 

 

7,538

 

 

 

7,538

 

 

 

$

329,137

 

 

$

329,137

 

 

Summarized financial information for the Joint Venture that is not consolidated is set out below. This summarized financial information includes the total amount for the Joint Venture and not our 50% interest in those amounts:

 

 

 

For the Three Months Ended September 30,

 

 

For the Six Months Ended September 30,

 

 

 

2021

 

 

2020

 

 

2021

 

 

2020

 

 

 

(dollars in thousands)

 

 

(dollars in thousands)

 

Revenue

 

$

53,852

 

 

$

54,387

 

 

$

99,234

 

 

$

104,987

 

Gross Margin

 

$

17,776

 

 

$

23,004

 

 

$

34,609

 

 

$

39,769

 

Earnings Before Income Taxes

 

$

16,519

 

 

$

21,154

 

 

$

32,459

 

 

$

36,745

 

 

 

 

September 30,

 

 

March 31,

 

 

 

2021

 

 

2021

 

 

 

(dollars in thousands)

 

Current Assets

 

$

68,028

 

 

$

66,871

 

Noncurrent Assets

 

$

110,571

 

 

$

107,617

 

Current Liabilities

 

$

17,586

 

 

$

16,390